29 November 2025 l Navi Mumbai
Mindspace Business Parks REIT (Mindspace REIT) with its management entrusted to K Raheja Corp Investment Managers, has successfully sealed a monumental acquisition that significantly strengthens its presence in the commercial real estate sector. The transaction involves the purchase of three high-grade office assets from the REIT’s sponsor, K Raheja Corp, for a substantial gross acquisition price of ₹29.2 billion, to facilitate a portion of the funding for this strategic purchase, the board of the manager also approved a preferential issue of units, aiming to raise ₹18.2 billion. This major move incorporates the acquisition of two specific “Special Purpose Vehicles”(SPVs), namely Pramaan Properties Private Limited and Sundew Real Estate Private Limited, which hold the acquired properties.
The acquired assets portfolio consists of close to 0.8 million square feet of high-quality, immediately rentable office space which was appraised by independent valuers at a Gross Asset Value (GAV) of ₹31.1 billion. The majority of the space at the ‘Ascent’ commercial tower in Worli, Mumbai (about 0.45 million square feet) and an office building of around 0.10 million square feet in Kalyani Nagar, Pune were the contributions of Pramaan Properties. On the other hand, Sundew Real Estate has added nearly 0.20 million square feet of A Grade office space at “The Square Avenue 98” in the BKC Annex area, Mumbai. The net equity purchase consideration for the 100% acquisition of shareholding in these entities after the adjustment for the debt and other liabilities is close to ₹18.2 billion, following this significant expansion, Mindspace REIT’s total portfolio will dramatically increase to approximately 39 million square feet.
The acquired assets are highly stable, featuring committed occupancy levels ranging from a robust 86% to a full 100%. Specifically, “The Square Avenue 98” in the BKC Annex is fully leased to JP Morgan, demonstrating the institutional quality of the assets. Furthermore, ‘Ascent’ in Worli counts major global names like Goldman Sachs, Dream11 and the executive centre among its tenants, while the Pune asset in Kalyani Nagar is 100% occupied by WeWork. The portfolio’s strong fundamentals are supported by an average in-place rent of approximately ₹ 243 per square foot per month and a healthy Weighted Average Lease Expiry (WALE) of about seven years, offering stable and predictable income streams. The BKC Annex property is also noted for its attractive mark-to-market potential for future rental growth.
The financial implications of this acquisition are positive for unitholders of Mindspace REIT. The deal is expected to contribute to a +9% growth in Net Operating Income (NOI) and a projected +1.7% accretion to the Distribution Per Unit (DPU) on a proforma basis. The overall Gross Asset Value (GAV) of the REIT’s entire portfolio will climb from ₹ 410.2 billion to ₹ 441.3 billion. Despite taking over debt associated with the acquired entities, the REIT’s Loan-to-Value (LTV) ratio only increases marginally from 24.2% to 24.7%, maintaining a low and flexible leverage profile. Ramesh Nair, the Managing Director and CEO of Mindspace REIT, stated that the acquisition of these “high-quality, institutional assets with strong cash flows” is a key strategic step aimed at enhancing the scale, stability and long-term growth of the REIT’s portfolio by strengthening its presence in prime central business district locations.
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Disclaimer – The information in this article is based on a specific deal overview and should not be considered financial advice. Please consult a qualified professional before making investment decisions related to Mindspace REIT
Source –
ET Realty
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